Looking so tired and wired

Markets were extremely choppy last week and lost ground after opening on a positive note While correction began when RBI announced its monetary policy the fact remains that markets were overbought and needed a correction either way Sensex lost 59570 points or 236 per cent to close at 2467384 points while Nifty lost 15785 points or 205 per cent to close at 755520 points Broader markets lost less with BSE100 BSE200 and BSE500 losing 192 per cent 170 per cent and 148 per cent respectivelyRBI governor Raghuram Rajan speaks to the press at the RBI headquarters in Mumbai after the RBI cut its key interest rate to a fiveyear low of 65 per cent PicAFPBSEHEALTHCARE led sectoral gainers and was up 071 per cent followed by BSEPOWER 063 per cent and BSEOILampGAS 057 per cent BSEBANKEX was the top loser down 407 per cent followed by BSEAUTO 235 per cent and BSEFMCG 215 per cent In individual stocks top gainer was Lupin up 519 per cent followed by Indian Oil 487 per cent and BHEL 475 per cent Losers were led by Maruti Udyog down 790 per cent followed by ICICI Bank 721 per centRate cutRBI cut repo rates by 25 basis points on expected lines but the market tumbled that day It opened weak and kept on losing momentum as the day progressed The fall was quite severe and markets never recovered from this blow for the rest of the weekDow Jones lost 21579 points or 121 per cent to close at 1757696 points The Indian Rupee lost 21 paisa or 032 per cent to close at 6647 FIIrsquoS after being buyers in the month of March turned sellers and sold through the week The quantum of sales was not that big but for the moment the trend has witnessed a change and we need to again reverse before markets begin to riseIn primary market news the issue from microfinance lender Equitas Holdings Limited was very well received with the issue subscribed 1721 times QIB portion was subscribed 1493 times HNI 5729 times and retail 140 times with about 582 lakh applications received Infibeam Incorporation Limited listed last Monday and managed to hold on to its price closing at R44320 again of 259 per cent against its issue price of R432Short weekThe week ahead would see results season unfolding with Infosys declaring its results on Friday April 15 This week is a short trading week with only three trading days as Thursday and Friday are trading holidays Given this there would be added pressure and hence volatility on Wednesday which becomes the last day of the weekThis would be more so as these holidays are India specific and global markets would remain open thereby creating a threeday impact when our markets reopenMarkets are looking tired and need to consolidate at these levels after having a great March when they were up over 10 per cent There are no drivers for the market currently and the possibility of GST would be known only when parliament reassembles Impact of state election results quarterly results and how the monsoon is faring will be potential driversInvestors are advised to trade cautiously Things look better going forward if one were to invest with a twelvemonth horizonDisclaimer No financial information whatsoever published anywhere in this newspaper should be construed as an offer to buy or sell securities or as advice to do so in any way whatsoever All matter published here is for educational and information purposes only and under no circumstances should be used for actual trading or making investment decisions Readers must consult a qualified financial advisor prior to making any actual investment or trading decisions based on information published here Any reader taking decisions based on any information published here does so entirely at his risk